Comment: Corporation tax in the spotlight

I am penning this from the Barracuda fulfilment centre – sorry, distribution centre – located in Switzerland (purely for logistics reasons, nothing to do with a favourable tax rate).

I am penning this from the Barracuda fulfilment centre – sorry, distribution centre – located in Switzerland (purely for logistics reasons, nothing to do with a favourable tax rate).

And as I write, having seen the Public Accounts Committee (PAC) meeting with Amazon, Google and Starbucks, all in the spotlight over corporation tax, it’s clear pantomime season is upon us. The PAC has taken on the role of the villain, ably led by Margaret Hodge.

The US companies were branded a disgrace by MPs. “We are not accusing you of being illegal,” said Hodge. “We are accusing you of being immoral.”

Immoral and a disgrace? That’s rich coming from Margaret Hodge, an MP who reportedly claimed thousands of pounds to pay for public relations services from a former Government press officer in direct contravention of House of Commons rules, who is also a shareholder in a family business founded by her father and run by her brother, which paid tax of just £163,000 on revenues of more than £2.1bn in 2011.

The committee also includes Stewart Jackson, who claimed more than £66,000 for his family home, including hundreds of pounds on refurbishing his swimming pool.

Not forgetting Austin Mitchell, who claimed for security shutters, ginger crinkle biscuits and reupholstering his sofa.

It was less a hearing and more akin to a kangaroo court.

Britain needs to be seen by the world as a place to do business. Companies, including Starbucks, Amazon and Google, use legal and lawful ways to reduce their tax liability. I would do the same and so would you. For lax tax legislation, blame the politicians.

This was jingoistic behaviour at its worst – you would expect it from Hugo Chavez not the Mother of all Parliaments.

In light of the recent collapse of Comet we should be applauding the likes of Starbucks, Amazon and Google, who between them employ thousands of UK taxpayers.

The companies themselves pay additional national insurance contributions and business rates on their premises. Business rates and politicians? Now, please, don’t get me started on that topic.